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Chart courtesy of StockCharts.com
- This market index changed from accumulation to just being traded back and forth since December 9th. The trading range since December 9th has been support at $222.73 while resistance has been near all time highs at $227.75.
- The long term uptrend is still up as it tried to break out to the upside again Friday.
- Price is above all key moving averages and near all time highs.
- The DJIA 20,000 continues to be a psychological focus for this market and a key technical resistance level.
- MACD is still under a bearish cross.
- The 65.59 RSI is very near an overbought reading and gives little room for much more upside based on historical data.
- The ATR continued to expand last week giving a little more room for intra-day trading.
- The presidential inauguration on January 20th has a potential for a sell the news day if we do not have a deeper pullback by then.
- With $VIX at 11.32 we are a low volatility market. Volatility doesn’t have much room to go any lower. VIX is lowest near tops and highest near market bottoms.
- The long term risk reward here still favors short selling for a pullback from these elevated levels.